Eurasia: Economics & Business (Jan 2024)

THE ROLE OF BRAND IMAGE AND PERCEIVED QUALITY OF PRODUCTS MEDIATE EWOM'S EFFECT ON THE PURCHASE INTENTION OF MILLENNIAL CONSUMER: SIDO MUNCUL HERBAL MEDICINE AND HERBAL PHARMACY’ INDONESIAN CONSUMERS STUDY

  • Lopulalan M.A.,
  • Yasa N.N.K.

Journal volume & issue
Vol. 79, no. 1
pp. 25 – 41

Abstract

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COVID-19's ease of transmission hampered worldwide economic activity, especially in Indonesia. In uncertain times, people worry and defend themselves. The COVID-19 pandemic has changed society's view of health. Immune boosters, especially herbal ones, are in demand. The COVID-19 epidemic saw Sido Muncul lead the Indonesian natural medicine and pharmaceutical market. Although COVID-19 cases fell, middle- and lower-middle-class consumers' purchasing capacity for health products decreased. This study examined the role of brand image and perceived product quality in mediating the effect of EWOM on buying interest in herbal medicine and herbal pharmaceuticals, which increased the impact of the COVID-19 pandemic on Indonesia's largest internet user group, Millennials. This study asked Indonesian residents who planned to buy Sido Muncul items in the past year. Millennials (born 1980–1995) with a minimum SMA/SMK education are respondents. The study sampled 176 people. Sample processing uses PLS-SEM. This research adds empirical evidence to studies on EWOM factors, brand image, perceived quality, and purchase intention. The practical implications of this research can be used by Sido Muncul companies, especially on the Indonesian market typology, to understand consumer behaviour in terms of EWOM in shopping, brand image, perceived quality, and purchase intentions.

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